Samvardhana Motherson jumps 10%, Tata Motors up over 5%: Auto stocks zoom as Trump considers pause on auto tariffs

Sona BLW Precision Forgings surged as much as 7.88% to ₹464 on the NSE. Tata Motors shares gained up to 5.4% to ₹627.45 apiece on the NSE, while Samvardhana Motherson jumped 10% to ₹130.05 on the NSE.

The NIFTY AUTO index was trading over 3% higher at 21,178.70 levels. It hit a high of 21,190.85 during the trade.

All 15 constituents were trading in the green.

Bharat Forge was trading over 5.2% higher while M&M was up 3.65%.

“I'm looking at something to help some of the car companies with it,” Trump told reporters gathered in the Oval Office. The Republican president said automakers needed time to relocate production from Canada, Mexico and other places. "And they need a little bit of time because they're going to make them here, but they need a little bit of time. So I'm talking about things like that.”

The statement hinted at yet another round of reversals on tariffs, as Trump's onslaught of import taxes has panicked financial markets and raised deep concerns from Wall Street economists about a possible recession.

When Trump announced the 25% auto tariffs on March 27, he described them as “permanent”. His hard lines on trade have become increasingly blurred as he has sought to limit the possible economic and political blowback from his policies.

Last week, after a bond market sell-off pushed up interest rates on US debt, Trump announced that for 90 days his broader tariffs against dozens of countries would instead be set at a baseline 10% to give time for negotiations.

At the same time, Trump increased the import taxes on China to 145%, only to temporarily exempt electronics from some of those tariffs by having those goods charged at a 20% rate.

25% tariff on auto imports

In March 2025, Donald Trump declared a 25% tariff on all imported vehicles entering the United States, a move he described as "very exciting" for domestic manufacturing.

The tariffs, which came into effect on April 2, will impact nearly half of all vehicles sold in the United States, including American brands assembled overseas.

The wide-ranging measure aims to incentivise car manufacturers to establish more production facilities within US borders.

Industry experts warn that the tariffs could have far-reaching consequences.

Autos Drive America, a representative group for international car manufacturers operating in the US, expressed serious concerns about the potential fallout.

"The tariffs will make car production more expensive," the group stated, "potentially leading to higher prices for consumers, reduced consumer choices, and potential job market disruptions."

The announcement threatens to escalate trade tensions with key automotive manufacturing nations, including European countries, Japan, and South Korea.